Great Elm Capital Group (NASDAQ: GECC) announced its earnings results on October 3, 2023, revealing a earnings per share (EPS) of $0.20 for the quarter. This figure fell short of analysts’ consensus estimates, which anticipated an EPS of $0.24, resulting in a $0.04 miss, as reported by Zacks.
The financial services provider reported a return on equity of 12.49% and a net margin of 36.81%. Following the announcement, Great Elm Capital Group’s stock experienced a slight decline, trading down 0.1% to reach $7.47. The trading volume for the day was 63,969 shares, slightly below the average volume of 69,375 shares.
Stock Performance and Financial Ratios
Great Elm Capital Group’s stock has shown volatility over the past year, with a low of $7.18 and a high of $11.45. The company currently holds a market capitalization of $86.43 million and a price-to-earnings ratio of 4.79. Its 50-day moving average stands at $9.56, while the 200-day moving average is at $10.32.
In terms of liquidity, the company has a current ratio and a quick ratio of 0.08, indicating potential challenges in meeting short-term obligations. Additionally, its debt-to-equity ratio is at 1.40, suggesting a reliance on debt financing.
Analyst Ratings and Future Outlook
Great Elm Capital Group has been the subject of several analyst reports recently. On October 3, 2023, Weiss Ratings reaffirmed a “hold (c)” rating for the company’s shares. The previous week, Wall Street Zen downgraded the stock from a “buy” rating to a “hold” rating. Capital One Financial also established a target price of $11.00 for Great Elm Capital Group in its report dated September 30, 2023.
According to data from MarketBeat.com, the average rating for Great Elm Capital Group is “Hold,” with an average price target also set at $11.00. This reflects a cautious outlook among analysts, emphasizing the need for the company to improve its financial performance in the coming quarters.
Great Elm Capital Group specializes in business development, focusing on loan and mezzanine investments in middle-market companies. The company primarily invests in sectors such as media, healthcare, telecommunications, and commercial services.
As investors analyze the latest earnings release, the company’s ability to meet future expectations will be crucial for its stock performance and overall market perception.
